Cost of Living in Madison, WI
Madison costs about the same as the national average.
What Things Cost
Compared to the US average (100)
Census ACS 2024
Census ACS 2024
BEA RPP 2023
BEA RPP 2023
Madison at a Glance
On the median income of $79,254, state income tax is roughly $6,063/year.
Sources: Census ACS 2024, Tax Foundation.
Madison is consistently rated one of the best places to live in America, and it earns the rankings. The state capital and University of Wisconsin home base sits on an isthmus between two lakes, creating a natural beauty that shapes daily life. The cost of living is right at the national average, which is exceptional for a city with this quality of life. The food scene, cycling infrastructure, and cultural amenities punch well above Madison's modest size (270,000 city).
How People Get Around
Source: Census ACS 2024.
Who Lives Here
Source: Census ACS 2024.
Why People Move to Madison
The isthmus setting between Lakes Mendota and Monona is genuinely beautiful. The farmers' market around the Capitol Square is one of the best in the country. UW-Madison creates the intellectual energy, cultural events, and research economy. Epic Systems (healthcare software, 10,000+ employees nearby) provides high-paying tech jobs. State Street is walkable and vibrant. The bike infrastructure is excellent.
Neighborhoods
The Near East Side (Willy Street, Atwood) is eclectic and walkable. Downtown and the Capitol Square area have urban energy. The Near West Side (Monroe Street, Vilas) is family-friendly with neighborhood character. Middleton and Fitchburg to the west are suburbs with good schools. Monona and McFarland to the south offer lake access at lower prices.
Things to Consider
Wisconsin's top income tax rate of 7.65% is above average. Property taxes are high at about 1.68%. Winter is cold and snowy. The city is smaller than it feels culturally, which limits career options outside healthcare, tech, government, and education. Housing costs have risen with the city's popularity. The progressive politics are a feature for some and a drawback for others.
Frequently Asked Questions About Madison
Consistently rated among the top 10 US cities for quality of life. The natural setting, cultural amenities, food scene, safety, and schools are exceptional. The trade-offs are cold winters, high taxes (7.65% income plus 1.68% property), and a smaller job market. For remote workers, healthcare professionals, and anyone who values quality of life over big-city scale, Madison is hard to beat.
The Capitol Square farmers' market is legendary. Dane County's agricultural abundance supports a farm-to-table restaurant scene that is one of the best in the Midwest. The cheese curds are required eating. The restaurant variety ranges from Hmong to Italian to Mexican to Nordic-inspired. Heritage Tavern, Graze, and L'Etoile anchor the fine dining scene.
Right at the national average, which is remarkable for a city this livable. Median home prices around $418,400 are modest for a top-rated city. Wisconsin's 7.65% income tax and 1.68% property tax add up, making the total tax burden above average. But housing is the biggest budget line, and Madison's housing is fair for what you get.